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Monday 25 March 2013

THE CONTROVERSIAL EAST/WEST ROAD...THE UNTOLD STORY! #OrubebeDam

So much have been said about the Leadership of Elder Godsday Orubebe and The Ministry of Niger Delta Affairs lately, ranging from Gross inefficiency towards tackling the many travails of the Region. With the EAST/WEST Road as a major focus as it has appeared the mainstay from public criticism by many all due to the relevance of the Road and also the huge resources generated daily from the Region. "The GATEWAY 2 The Niger Delta"


But on the seeming contrary, lack of information on the said Road and the Challenges it faces has plagued the Heart of many to venture into the game of destructive criticism against the Minister Elder Godsday Orubebe (CON) and his humble Office that is poised in bringing the true dividends of Democracy to Niger Deltans. As clearly Stated, massive construction Work is Ongoing in the East West Road that is due for completion December 2014.


As the recent activities of the Minister has brought to many the Hidden TRUTH about the Ministry and his Plans in Transforming the Region in line with President Jonathan’s Transformation Agenda.


One notable highlight of his enviable Leadership is the approach towards achieving maximum Transparency on financial matters as it concerns the Ministry.

MOA

Below is an excerpt of the Media Briefing by the Hon. Minister.

I wish to crave your indulgence while I tarry awhile on the history of the East-West Road. The Road was formally the project of the then Mid-West and Rivers State Government before it was taken over by the Federal Government in 1974 – 1975. At that time, the development of the road suffered persistent set back as contractors abandoned work due to problems with host communities and lack of financial commitment from successive Governments.

TACKLING THE PROJECT HEADLONG
In April 2006, the administration of former President Olusegun Obasanjo gave the Federal Ministry of Works (FMW), which is responsible for the construction of such infrastructure, a two-week ultimatum to submit a memorandum to the Federal Executive Council (FEC) for the award of contracts for the dualization of the East-West Road.
In order to meet the deadline given, the FMW awarded the contracts for the Engineering Design of the road in three sections to three different consultancy firms, with Design of Section I from Port Harcourt to Mbiama awarded to Messrs. Aim Consultants at the sum of N164,207,732.00. This section is 84Km long, starting from Eleme Junction in Port Harcourt and terminating at Mbiama also in Rivers State.
The design of Section II from Mbiama to Warri, was awarded to Messrs. Corona Engineering & Consulting Nigeria at the sum of N199,541,037.00. This section is 104Km long, starting from Mbiama in Rivers State and terminating at Warri in Delta State, while the design of Section III from Port Harcourt to Eket including the design of the two bridges over River Nun at Kaiama and River Forcados at Patani, was awarded to Messrs. Team Nigeria at the total sum of N101,085,134.00. This section is 150Km long, starting from Eleme Junction in Port Harcourt, Rivers State and terminating at Eket in Akwa Ibom State.

Messrs. Guy Otobo & Partners were also appointed to coordinate the work of the design consultants and of the actual contractors in order to ensure uniformity. The coordinating consultant was also tasked with the responsibility of analyzing the different tenders in order to ensure their reasonableness and sufficiency.
Due to the exigencies at that time in the Niger Delta region and in order to meet the deadline given by Mr. President and also fulfill due process requirements, the Bill of Engineering Measurement and Evaluation (BEME) for the contracts was prepared in four sections with tender drawings prepared using baseline designs (an empirical estimation of quantities).
The project was therefore awarded in four (4) Sections to four different contractors as follows:-
i. Section I Warri – Kaiama (87Km) in Delta State to M/S Setraco Nig. Ltd at the sum of N64,125,000,000.00
ii. Section II Port Harcourt – Kaiama (101Km) in Rivers/Bayelsa States to M/S Julius Berger Nig. Ltd at the sum of N79,230,000,000.00,
iii. Section III Port Harcourt – Eket (99Km) in Rivers/Akwa Ibom States to M/S RCC Nig. Ltd at the sum of N35,600,000,000.00,
iv. Section IV Eket – Oron (51Km) in Akwa Ibom State to M/S Gitto Costruzioni Gen. Nig. Ltd at the sum of N26,000,000,000.00.
The project experienced another major setback when youth restiveness and insecurity reached unprecedented height in the region forcing Messrs. Julius Berger Nig. Ltd., the contractor for Section II to abandon site. Determined to tackle the restiveness in the region, the President Musa Yar’Adua administration created the Ministry of Niger Delta Affairs (MNDA) in 2008. This in no small measure contributed to the dousing of the restiveness resulting eventually in the success of the Amnesty Programme. In creating the MNDA, the Yar’Adua Government ordered the transfer of the East-West Road project from the Federal Ministry of Works (FMW) to the Ministry of Niger Delta Affairs.
THE CHALLENGES MNDA INHERITED OVER THE EAST WEST ROAD
The Ministry, inheriting the inadequacies of the defunct contract at transfer and using the unspent funds left in the defunct Section II contract as contract ceiling, re-awarded the Section II, with the scope of works unchanged to Messrs. Setraco Nig. Ltd. in April/May 2009 into two sub sections namely: Section II Sub Section I: Port Harcourt – Ahoada (47Km) at a Contract sum of N29,922,478,839.19 with a completion period of 48 months and Section II Sub Section II: Ahoada – Kaiama (54Km) at a Contract sum of N44,883,718,258.18 with a completion period of 36 months.

Inadequate Quantities for Major Work Items:
The inadequacies of work items quantities inherent in the contracts as a result of the baseline design method used affected all the sections of the East-West Road Project. (i.e earthworks items). There was therefore the need to contract consultants to produce improved designs for the road work.

REALITIES ON GROUND
All these inherited challenges resulted in the need for the augmentation of the contract which the Federal Executive Council graciously approved for the projects to move on. The entire Project was divided into four (4) sections as follows:
(i) Section I - Warri - Kaiama (87km)
§ 19 Nos new bridges with a total length of 1,960m.
§ Upgrading and rehabilitation of existing bridges on the old road.
§ 298 Nos new culverts; and
§ Revised Contract sum – N112,166,400,493.60
(Original-N64,125,000,000.00)
(ii) Section II Sub-section I - Port Harcourt - Ahoada (47Km)
§ 1 No. new bridge with a length of 252m;
§ Upgrading and rehabilitation of existing bridges on the old road.
§ Construction of 50 Nos new culverts of various sizes; and
§ Revised Contract sum-N48,973,303,132.78
(Original-N29,922,478,839.19)
(iii) Section II Sub-section II - Ahoada – Kaiama (54Km)
§ 10 No. new bridges with a total length of 916m; and
§ 339 No new culverts to be provided with 90 No completed
§ Upgrading and rehabilitation of existing bridges on the old road.
§ Revised Contract sum-N84,759,913,053.64
(Original-N44,883,718,258.18)
(iv) Section III - Port Harcourt – Eket (99Km)
§ 4 No. bridges, including the 840m long major bridge over the Imo River. The total length is 1,040m.
§ Upgrading and rehabilitation of existing bridges on the old road.
§ Revised Contract sum-N66,459,088,593.59
(Original-N35,600,000,000.00)
(v) Section IV - Eket - Oron (51Km)
§ 6 No. bridges including the 398m major Eket Bridge over Qua Iboe River. The total length is 458m.
§ 74 Nos new culverts of various types.
§ Revised Contract sum-N37,509,550,669.15
(Original-N26,000,000,000.00)

THE CONSTRAINT OF DWINDLING BUDGETARY PROVISIONS:
I wish to recall that the total payments made by Federal Ministry of Works from 2006 – 2008 are in the sum of N33.4 billion with a percentage completion of 10% at the time the project was handed over to MNDA. To date, the Ministry of Niger Delta Affairs has paid N122.6 billion and moved the average percentage completion to 51%. The Ministry will require the sum of N193,855,828,511.04 to complete the East – West Road Projects by the new date of 2014. This is broken down as follows:
Estimated Funding Gap to Complete Project (Sections I-IV) as at 31st Dec. 2014
Amount owed contractors
N 8,572,143,549.29

Cost of completion by Dec. 2014
N176,536,978,563.18

Retention to be paid in 2015
N 8,746,706,398.57

Total
N193,855,828,511.04

So far out of the total 338Km dual carriageway road about 50km has been completed to asphaltic wearing course, 115Km has been completed to asphaltic binder level while over 120Km earthworks has been done. Also, out of the total 42Nos bridges, 34 Nos. bridges have been substantially completed which includes the second 850m Imo River Bridge.

CURRENT STATUS OF THE EAST-WEST ROAD AFTER FLOODING
Following the directive from the Presidency for the re-opening of East-West road for vehicular movement, commuters and movement of goods and services, I undertook a tour of the damaged portions of the road and was delighted that the Contractors working on these sections of the road who were at that time agonizingly waiting for payment for work done on the road were forced to approach the banks to borrow money in order to return to site and re-open the flooded portions of the road. During the inspection tour of the Onne-Ahoda-Kaiama-Mbiama-Patani-Ughelli sections of the East-west road by the Hon. Ministers on Monday, November 12, 2012, contractors were on site and one lane of the very damaged portions were already repaired and open to use without hindrance by motorists, commuters and trailers/lorries carrying goods.

TARGET FOR THE COMPLETION OF EAST-WEST ROAD
11. In order to complete the project by 2014 according to the programmes of work and cash flow projections for the four sections, the additional funds required in 2012 is in the total sum of N34,428,000,000.00, while funds required for 2013 is in the total sum of N86,553,529,762.00 and funds finally required for 2014 is in the total sum of N50,013,997,249.00. From the Sure-P budget for the Ministry, the sum of N21.7 billion is to be utilized for the East-West project this year. Going by these appropriations, it is not likely that these funds will be enough to complete the project by December 2014. To ensure the completion of the East-West Road in 2014, I am happy to report that the Ministry has been proactive and with the support of the Ministries of Finance, Justice and the Debt Management Office is collaborating with the Infrastructure Development Bank Plc (formerly Urban Development Bank of Nigeria) as Transaction Agent/Finance Arranger and with the African Development Bank (ADB) to explore a window to raise funds needed to complete the East-West Road project. Furthermore, the Ministry is pursuing the Public Private Partnership (PPP) option in the implementation of projects.

God Bless,

Elder Godsday Peter Orubebe (CON)


-@MOAgbajoh

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